Web3.0 in e-commerce: How the technology will transform online retail

Reportedly, the global e-commerce market is expected to hit $58.74 trillion in sales by 2028.

Experts believe Web 3.0 and decentralised marketplaces can help address the limitations of traditional e-commerce platforms
Experts believe Web 3.0 and decentralised marketplaces can help address the limitations of traditional e-commerce platforms

By Nishant Behl

The world of e-commerce has been rapidly evolving, and Web 3.0 is set to revolutionise the industry even further. Web 3.0 generally refers to the next generation of the internet. Artificial intelligence, blockchain, and the Internet of Things (IoT) will be integrated to create a more intelligent, decentralised, and secure web. With Web 3.0, users will have more control over their data, and transactions will be faster and more secure.

In the e-commerce industry, Web 3.0 technology will significantly impact how businesses interact with their customers, transforming how online retail functions. With the global Web 3.0 market poised to grow from $6.8 billion in 2020 to $48.3 billion by 2025, its greater involvement in online retail operations is imperative.

Decentralisation of e-commerce platforms

Blockchain technology and smart contracts can be used to create decentralised marketplaces that are not controlled by any single entity. This allows for greater transparency, security, and efficiency in e-commerce transactions. The global e-commerce market is expected to hit $58.74 trillion in sales by 2028. With such a large market, there is a need for secure and efficient e-commerce platforms.

Web 3.0 and decentralised marketplaces can help address the limitations of traditional e-commerce platforms, such as high transaction fees, lack of transparency, and vulnerability to fraud. Decentralised e-commerce platforms can also benefit sellers, including increased control over their products and pricing and reduced dependence on centralised platforms.

Improved supply chain management

Blockchain technology can be used in e-commerce to create a more efficient and transparent supply chain. With Web 3.0, every step of the supply chain can be tracked, recorded and monitored in real time, which can help reduce inefficiencies and errors. The global e-commerce market is expected to soar to new heights. With such a large market, efficient supply chain management is crucial for businesses to stay competitive.

Web 3.0 and blockchain can help improve the supply chain by providing real-time information on inventory levels, shipping and delivery times, and product quality. Additionally, blockchain technology can help reduce fraud and counterfeit products and improve traceability in the supply chain. This can help build consumer trust and increase customer satisfaction.

Personalisation of customer experience

With Web 3.0, retailers can leverage advanced technologies such as artificial intelligence, machine learning, and blockchain to create highly personalised customer experiences. According to a study by Epsilon, 80% of consumers are more likely to do business with a company that offers personalised experiences.

Another survey by Accenture found that 91% of consumers are more likely to shop with brands that recognise, remember, and provide relevant offers and recommendations. By using Web 3.0 technologies, online retailers can analyse customer data in real-time and use it to personalise the shopping experience. For example, AI-powered chatbots can provide personalised product recommendations based on a customer’s browsing history, while blockchain technology can ensure the security and privacy of customer data.

Secure and fast transactions

Web 3.0 can also enable retailers to leverage blockchain technology, which offers improved security, transparency, and efficiency in online transactions. The use of blockchain technology in online retail is expected to generate over $3 billion in annual cost savings by 2025.

Web 3.0 also enables the use of cryptocurrencies as a mode of payment, which can offer faster and cheaper transactions than traditional payment methods. For example, Bitcoin transactions are processed almost instantly and can be completed with minimal transaction fees.

Greater control over data

Web 3.0 also enables consumers to have greater control and ownership over their data, including the ability to monetise it. With Web 3.0, consumers can securely store and manage their data with blockchain technology. A survey by Deloitte found that 53% of consumers are willing to share their data with retailers if they receive personalised offers in return.

However, consumers are increasingly concerned about the privacy and security of their data, with 81% worried about how their data is being used. Web 3.0 allows for decentralised marketplaces, where consumers can monetise their data by sharing it with interested parties. This can give consumers greater control over their data and the ability to profit from it.

As an e-commerce business owner, it is essential to start preparing for the Web 3.0 revolution by investing in blockchain technology, AI, and machine learning algorithms. By doing so, businesses can stay ahead of the competition and take advantage of the many opportunities that Web 3.0 will bring. Web 3.0 will be a game-changer for the e-commerce industry, and it will be exciting to be at the forefront of this transformation.

The author is founder, Expand My Business

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First published on: 26-03-2023 at 14:30 IST